The UK’s payments on account system catches a lot of new sole traders by surprise.

            Payments on account are advance payments towards your next Self Assessment tax bill (in this case for the year 25/26). You pay them on top of any tax you owe for the previous (24/25) tax year. HMRC uses payments on account to help spread the cost of your tax across the year rather thanContinue reading “The UK’s payments on account system catches a lot of new sole traders by surprise.”